Geographical indication is an intellectual property right established by legislation in the EU. It is a quality system that protects the name of a product whose quality, characteristics or reputation derive from its geographical origin. Our legal trainee Leander Witting compiled a blog about the reforming EU legislation.

The legislative reform concerning geographical indications is currently progressing in the EU institutions. Finland supports the goal of strengthening the level of protection of geographical indications and expanding the introduction of indications throughout the EU. The purpose of the system is to create added value for high-quality local agricultural products such as various food products, distilled spirits, and wines. With the amendment of the law, geographical protection will also cover handicraft and industrial products.

Geographical indications are an important part of EU’s agricultural policy

In Pompeii there is an inscription on a wall that reads ”For one coin you can drink wine, for two you can drink the best, and for four you can drink Falernian”. So even in ancient Rome, the origin of different products was an important part of daily commercial life, and this has not changed in any way. The geographical indications in the EU are an important part of the Union’s agricultural policy and bring in significant income from both the EU-internal and worldwide markets.

Products of geographically indicated origins are not only important because of their direct economic value. The products’ cultural and emotional value is a significant component of their reputation as well as the pride of the manufacturer. This is seen particularly in countries such as France and Italy where most of the EUs geographical indications are registered, and in countries which are known for their pride in their local specialties.

These commercially important geographical indications such as the French 'Champagne', the Italian 'Parmigiano Reggiano', the 'Irish Whiskey' and the 'Gouda Holland' are also well visible on the Finnish market, but there is still a very limited number of geographically indicated products in Finland. Examples of these are the baby potatoes from Lapland 'Lapin puikula', 'Finnish vodka' and the small salmon fish from Puruvesi in Eastern Finland, 'Puruveden muikku'.

Protection is not granted to a singular producer but to an application group, and all producers that adhere to the prerequisites of the protection benefit from it. Applications are handled (in Finland) by the Finnish Food Authority and after that by the European Commission, which decide the eligibility of the application.

The aim is to unify and expand the system

At the moment the legislation is comprised of three different EU regulations as well as the different national systems. The plan is to combine these regulations to form one overarching regulation. This would simplify registrations, administration as well as expanding the system to better encompass all EU states.

The administrative system would be changed so that the registrations would be transferred from the Commission to the European Intellectual Property Office (EUIPO). It is proposed that there would also be an opportunity to directly register with EUIPO if the state does not have or if there is no plan to establish a national authority that would review the applications. EUIPO has for many years already assisted the Commission in processing the applications, but with the new system most of the responsibility would be shifted over to EUIPO.

One thing that is quickly noticed when observing geographical indications is that they are the exclusive domain of agricultural products (foodstuffs, wines and spirit drinks). However, this situation will be changed. The plan is to develop geographical protection for handicraft and industrial products as well, including among others products made of glass, porcelain, ceramics, and rare metals. This would also concretely show the connection between the quality of the product and its place of origin, which is not necessarily evident from a registered trademark.

Disagreements about the administrative model slow down progress

The regulations’ central theme is the simplification of the system. This would be an easy task if the goal was only to simplify agricultural regulations. Then the Finnish Food Agency and similar national agencies would continue their current tasks as before. The complexity comes from the fact that the plan now covers two very different areas, and the needs and wishes of both interest groups should be considered.

Many agricultural interest groups in Europe have expressed their dissatisfaction with the increase in EUIPO's responsibility, as they do not trust EUIPO's expertise in the agricultural sector.

Three administrative options have been presented. The first of these would be that the interest groups would work directly with EUIPO. This would at least initially reduce the administrative burden but would be an unpleasant solution for those interest groups that do not trust EUIPO's competence. Possibly, it could also weaken the states' opportunities to influence agricultural policy, when the interest groups would directly deal with an EU institution instead of a national agency.

The second option would be to establish another agency alongside the current operation, which would supervise applications for handicrafts and industrial products. This would satisfy agricultural interest groups, which support close cooperation with agricultural producers. In this model, the administrative costs would be high, especially when industrial interest groups debate over product categories and corresponding prerequisites.

A third option would be to establish a new public body or unit that would oversee the process. This would also be a heavy model, but it would centralize applications for both agricultural and handicraft and industrial products under the same roof. This model would also preserve the two-step application process that is so important for both interest groups and producers.

It is difficult to assess how Finnish and European companies will utilize the new legislation and the new opportunities it brings. However, it is certain that the changes will affect us as well.

I hope that we will be able to value and support our local domestic companies that produce quality products. Regardless of whether it's Karelian pies or glass vases.